VAT on business calls

[TheCyclingProgrammer]

Simple question I hope (no I haven't yet asked my accountant). I'm still getting to grips with some subtleties of what you can and can't reclaim VAT on since moving off the FRS.

I very occasionally reclaim some itemised business calls from the business as an expense. These calls are part of my home phone bill. I'm able to identify the cost of the business calls and MyCo reimburses me like any other out of pocket expense.

Can I reclaim the VAT on this? I know the general principle is you need a VAT invoice in the company name to reclaim VAT but I vaguely remember HMRC having some kind of concession for VAT on employee expenses. I can't find a reference though.

[Darren at Fox-Bartfield]

VAT

@CP you may find the link here useful.

[TheCyclingProgrammer]

@CP you may find the link here useful.

Thanks, I've read that but it doesn't seem to cover employee expenses except travel.

Do I just need to keep a copy of my phone bill which shows the VAT?

Edit: well it seems Sky absolutely point blank refuse to provide any kind of VAT invoice for their residential services, so I guess I just won't bother.

[Darren at Fox-Bartfield]

VAT

The example on the first page is for mobile phones, same principle applies. So as long as you have a valid VAT invoice, yes you can claim for the business related portion of the bill.

[TheCyclingProgrammer]

The example on the first page is for mobile phones, same principle applies.

Its not clear to me that those examples apply to limited companies. For example, an employer can provide a single mobile phone to their employee for business and personal use and AFAIK they aren't required to apportion the VAT on any contract costs where its in the company name. That's what was confusing me.

[radish2008]

I was told by my previous accountants that you can claim the whole cost of a private mobile if you want. HMRC doesn't care about £15-£20 a month and would never query a few calls in any case. I work from home and spend roughly 4 hours a day on conf calls, I pay Virgin £6 a month for free calls at any time but don't claim it.

[jamesbrown]

The example on the first page is for mobile phones, same principle applies. So as long as you have a valid VAT invoice, yes you can claim for the business related portion of the bill.

I don't believe this is correct for amounts below a certain threshold, 25 quid IIRC (i.e. that you need a valid VAT invoice).

Anyway, yes you can reclaim for the VAT on business calls.

[TheCyclingProgrammer]

Anyway, yes you can reclaim for the VAT on business calls.

Even without a VAT invoice to back it up?

I'm not too fussed about this, its not a lot of money at all, it only came up as I was checking my VAT return before submitting and noticed that FreeAgent had included my expense claim in there and I thought I'd better check it. I have no problem with not claiming it.

[jamesbrown]

Edit: well it seems Sky absolutely point blank refuse to provide any kind of VAT invoice for their residential services, so I guess I just won't bother.

You don't need it. I'm also with Sky and I reclaim the VAT on business calls without a VAT invoice.

Here's the notice (700):

https://www.gov.uk/government/public...s-and-accounts

Section 19.6.5 (b).

Phone calls.

[jamesbrown]

Even without a VAT invoice to back it up?

Yes.